Re:Fed to buy junk bonds, lend to states in fresh virus support
by vkou on Thursday April 09, 2020 @05:55PM
(#22827613)
> And all of this is urgently necessary to prevent economic collapse in the US. Urgently necessary.
The fed buying crap bonds isn't even doing anything to prevent economic collapse. The economy has already collapsed, due to to the shutdowns. This is nothing but a transfer of wealth from people who own US dollars, to people who own US equities.
All it does, is prop up the stock market. The real economy could go to zero, but as long as the Fed is buying assets, the stock market will keep looking green.
The fed buying crap bonds isn't even doing anything to prevent economic collapse. The economy has already collapsed, due to to the shutdowns. This is nothing but a transfer of wealth from people who own US dollars, to people who own US equities.
All it does, is prop up the stock market. The real economy could go to zero, but as long as the Fed is buying assets, the stock market will keep looking green.